Springfield Properties (SPR) Trading Update summary

Trading performance and market conditions

• Private housing reservation rates improved in H1 2025, reflecting increased homebuyer confidence and resulting in more reservations than H1 2024.

• Selling prices remained resilient across all brands, supporting revenue stability.

• Affordable housing gross margin returned to double digits after completing legacy contracts and progressing new ones.

• Some affordable housing projects delayed due to public funding uncertainty, but recent Scottish Budget allocation expected to drive growth.

• Demand for well-located, deliverable land remains high, with opportunities for profitable land sales being considered.

Financial position and outlook

• Net bank debt at 30 November 2024 was £63.6m, down from £93.4m a year earlier, reflecting strategic debt reduction and cost management.

• Debt increase over the six months attributed to seasonal working capital cycle, expected to unwind as homes are completed and sold.

• Confident in meeting FY 2025 market expectations, with further details to be provided in mid-February 2025.

Strategic initiatives and stakeholder engagement

• Engaged with stakeholders on Inverness and Cromarty Firth Green Freeport and new powerlines, leveraging land holdings in the region.

• Well-positioned to deliver housing for green infrastructure development in northern Scotland.

• Maintains one of the largest owned land banks in Scotland, with many sites already having planning permission.

• Strong reputation for high-quality, energy-efficient homes and established relationships across the housing supply chain.